ED seizes cash, luxury cars in case against ex-promoters of Kwality Ltd.

The Enforcement Directorate on Friday said it seized Rs 1.3 crore in cash and "evidence" related to shell companies after it searched the former promoters of dairy major Kwality Ltd. as part of a Rs 1,400 crore alleged bank fraud linked money laundering case. Luxury cars and demat accounts valued at about Rs 6.5 crore have also been frozen under the provisions of the Prevention of Money Laundering Act (PMLA), it said in a statement. The federal agency raided 15 locations in Delhi-NCR on November 27 in the case covering the premises of promoters and directors of the erstwhile company like Sanjay Dhingra and Siddhant Gupta apart from some "shell" (paper) companies related to them. Kwality Ltd. has been liquidated and is now with new owners. The ED case stems from a September 2020 CBI FIR filed against the said promoters and Kwality Limited, which was engaged in the processing and trading of milk, ice creams and other dairy products. The CBI FIR alleged that the said erstwhile compan